UPDATE: Oppenheimer Downgrades TCF Financial Corporation to Perform on Shifting Debate

In a report published Wednesday, Oppenheimer analyst Terry McEvoy downgraded the rating on TCF Financial Corporation

from Outperform to Perform, and removed the $15.00 price target. In the report, McEvoy noted, “The debate over TCF has shifted away from the "broken model" argument following the roll-out of Free Checking last year to one that questions the transition into more specialized lending and if TCF actually is an acquisition candidate. This change in sentiment is behind the stock's outperformance. With TCF now trading close to our $15 PT, we are lowering our rating to Perform from Outperform and rescinding our PT. M&A activity in the sector is off to a slow start this year and prices remain depressed, suggesting that TCF is now fairly valued. Within this report, we look at TCF's specialized lending area in light of how important these businesses will be to future growth and the potential loan mark should the company be acquired.” TCF Financial Corporation closed on Tuesday at $14.76.